[Federal Register Volume 88, Number 118 (Wednesday, June 21, 2023)]
[Notices]
[Pages 40268-40270]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13092]


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FEDERAL RESERVE SYSTEM


Privacy Act of 1974; System of Records

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice of a new system of records.

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SUMMARY: Pursuant to the provisions of the Privacy Act of 1974, notice 
is given that the Board of Governors of the Federal Reserve System 
(Board) proposes to establish a new system of records, entitled BGFRS-
45, ``FRB--Debt Collection Records.'' BGFRS-45 includes records 
concerning debts owed to the Board or to the United States (including 
but not limited to restitution collectible by the United States) that 
arise out of the Board's operations or other activities, and records 
concerning the Board's efforts to collect these debts. The Board will 
create, collect, and maintain these records to support its debt 
collection efforts, and to facilitate compliance with statutory and 
regulatory requirements.

DATES: Comments must be received on or before July 21, 2023. This new 
system of records will become effective July 21, 2023, without further 
notice, unless comments dictate otherwise.
    The Office of Management and Budget (OMB), which has oversight 
responsibility under the Privacy Act, requires a 30-day period prior to 
publication in the Federal Register in which to review the system and 
to provide any comments to the agency. The public is then given a 30-
day period in which to comment, in accordance with 5 U.S.C. 552a(e)(4) 
and (11).

ADDRESSES: You may submit comments, identified by BGFRS-45 ``FRB--Debt 
Collection Records,'' by any of the following methods:
     Agency Website: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include SORN name 
and number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    In general, all public comments will be made available on the 
Board's website at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, and will not be modified to remove 
confidential, contact or any identifiable information. Public comments 
may also be viewed electronically or in paper in Room M-4365A, 2001 C 
St. NW, Washington, DC 20551, between 9:00 a.m. and 5:00 p.m. during 
Federal business weekdays.

FOR FURTHER INFORMATION CONTACT: David B. Husband, Senior Counsel, 
(202) 530-6270, or [email protected]; Legal Division, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue NW, Washington, DC 20551. For users of telephone systems via 
text telephone (TTY) or any TTY-based Telecommunications Relay 
Services, please call 711 from any telephone, anywhere in the United 
States.

SUPPLEMENTARY INFORMATION: In 2019, the Board adopted regulations 
providing for the collection of debts owing to the United States 
arising out of the Board's operations or its enforcement and other 
regulatory activities. See 84 FR 15502 (April 16, 2019) and codified at 
12 CFR part 267, ``Procedures for Debt Collection.'' Prior to the 
adoption of these regulations, the Board's debt collection processes 
focused on salary offset from current Board employees and were 
addressed via the Board's payroll processes. Building upon this 
adoption of new procedures and after reviewing the Board's existing 
debt collection processes, the Board has determined to expand its 
collection processes beyond current employees, to include persons 
indebted either to the Board or the United States (including but not 
limited to restitution or

[[Page 40269]]

disgorgement debts collectible by the United States) in connection with 
the Board's operations or activities. The Board is therefore proposing 
to establish a new system of records for the maintenance and operation 
of the Board's expanded debt collection activities.

SYSTEM NAME AND NUMBER:
    BGFRS-45, ``FRB--Debt Collection Records''.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Board of Governors of the Federal Reserve System, 20th Street and 
Constitution Avenue NW, Washington, DC 20551.

SYSTEM MANAGER(S):
    Cynthia Francis, Senior Manager--Accounting, Division of Financial 
Management, (202) 452-2386, or [email protected] and Joshua 
Chadwick, Senior Special Counsel--Enforcement and Litigation, Legal 
Division, (202) 263-4835, or [email protected]. Both managers 
are located at the Board of Governors of the Federal Reserve System, 
20th Street and Constitution Avenue NW, Washington, DC 20551.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Sections 10 and 11 of the Federal Reserve Act (12 U.S.C. 244 and 
248), 12 CFR part 267, Federal Debt Collection Improvement Act, 5 
U.S.C. 5514, 31 U.S.C. 3711-3720D, and Executive Order 9397.

PURPOSE(S) OF THE SYSTEM:
    The Board maintains these records for debt collection purposes to 
reduce the debts owed to the Board arising out of its operations and 
activities, to protect the programmatic and financial integrity of the 
Board's operations and activities, and to facilitate compliance with 
regulatory and statutory requirements.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Persons indebted to the Board or the United States (including but 
not limited to restitution or disgorgement debts collectible by the 
United States) in connection with the Board's operations or activities.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records documenting the basis for the person's debts; the amount of 
the debt, payments on the debt (potentially including associated 
banking information), and accruals on the person's debts; and internal 
and external correspondence concerning the person's debts. Sensitive 
personally identifying information in the system could include debtors' 
Social Security or tax identification numbers, dates of birth, bank 
account information, tax records, financial information, educational 
records, insurance records, payroll records, and pension records.

RECORD SOURCE CATEGORIES:
    Information is provided by other Board components whose activities 
are connected to the debt, the Board's payroll department, debtors, 
third parties holding information about debtors, materials produced in 
litigation, public records and databases compiling information from 
such records, and the U.S. Treasury Department or other Federal 
agencies.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    General routine uses A, B, C, D, E, F, G, H, I, and J apply to this 
system. These general routine uses are located at https://www.federalreserve.gov/files/SORN-page-general-routine-uses-of-board-systems-of-records.pdf and are published in the Federal Register at 83 
FR 43872 at 43873-74 (August 28, 2018). Records may also be used:
    1. to disclose information to the U.S. Social Security 
Administration to report wages paid and FICA or other tax deductions;
    2. to disclose information to the U.S. Internal Revenue Service and 
to state, local, tribal, and territorial governments for tax purposes;
    3. to disclose information to the U.S. Office of Personnel 
Management in connection with programs administered by that office;
    4. to disclose information to an employee, agent, contractor, or 
administrator of any Federal Reserve System, or Federal Government 
employee benefit or savings plan, any information necessary to carry 
out any function authorized under such plan, or to carry out the 
coordination or audit of such plan;
    5. to disclose information to a Federal agency, Federal court, or a 
debtor's obligor for the purpose of collecting a debt owed to the 
Federal Government (including restitution collectible by the United 
States) through administrative or salary offset or the offset of tax 
refunds or other Federal payments, or by other legally authorized 
means;
    6. to disclose relevant information to other Federal agencies 
conducting computer matching programs to eliminate fraud and abuse and 
to detect unauthorized overpayments made to individuals.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Paper records in this system are stored in locked file cabinets 
with access limited to staff with a need to know. Electronic records 
are stored on a secure server with access limited to staff with a need 
to know.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records maintained can be retrieved by name.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records relating to a debt will be retained for at least six years 
after final payment of the debt.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Paper records are secured by lock and key and electronic files are 
stored on secure servers. The system has the ability to track 
individual user actions within the system. The audit and accountability 
controls are based on NIST and Board standards which, in turn, are 
based on applicable laws and regulations. The controls assist in 
detecting security violations and performance or other issues in the 
system. Access to the system is restricted to authorized users who 
require access for official business purposes. Users are classified 
into different roles and common access and usage rights are established 
for each role. User roles are used to delineate between the different 
types of access requirements such that users are restricted to data 
that is required in the performance of their duties. Periodic 
assessments and reviews are conducted to determine whether users still 
require access and have the appropriate role, and whether there have 
been any unauthorized changes.

RECORD ACCESS PROCEDURES:
    The Privacy Act allows individuals the right to access records 
maintained about them in a Board system of records. Your request for 
access must: (1) contain a statement that the request is made pursuant 
to the Privacy Act of 1974; (2) provide either the name of the Board 
system of records expected to contain the record requested or a concise 
description of the system of records; (3) provide the information 
necessary to verify your identity; and (4) provide any other 
information that may assist in the rapid identification of the record 
you seek.
    Current or former Board employees may make a request for access by 
contacting the Board office that maintains the record. The Board

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handles all Privacy Act requests as both a Privacy Act request and as a 
Freedom of Information Act request. The Board does not charge fees to a 
requestor seeking to access or amend his/her Privacy Act records.
    You may submit your Privacy Act request to the--Secretary of the 
Board, Board of Governors of the Federal Reserve System, 20th Street 
and Constitution Avenue NW, Washington, DC 20551.
    You may also submit your Privacy Act request electronically by 
filling out the required information at: https://foia.federalreserve.gov/.

CONTESTING RECORD PROCEDURES:
    The Privacy Act allows individuals to seek amendment of information 
that is erroneous, irrelevant, untimely, or incomplete and is 
maintained in a system of records that pertains to them. To request an 
amendment to your record, you should clearly mark the request as a 
``Privacy Act Amendment Request.'' You have the burden of proof for 
demonstrating the appropriateness of the requested amendment and you 
must provide relevant and convincing evidence in support of your 
request.
    Your request for amendment must: (1) provide the name of the 
specific Board system of records containing the record you seek to 
amend; (2) identify the specific portion of the record you seek to 
amend; (3) describe the nature of and reasons for each requested 
amendment; (4) explain why you believe the record is not accurate, 
relevant, timely, or complete; and (5) unless you have already done so 
in a related Privacy Act request for access or amendment, provide the 
necessary information to verify your identity.

NOTIFICATION PROCEDURES:
    Same as ``Access procedures'' above. You may also follow this 
procedure in order to request an accounting of previous disclosures of 
records pertaining to you as provided for by 5 U.S.C. 552a(c).

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    None.

    Board of Governors of the Federal Reserve System.
Michele Taylor Fennell,
Deputy Secretary of the Board.
[FR Doc. 2023-13092 Filed 6-20-23; 8:45 am]
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